Mortgage Strategy
28 June 2004

  • 'Hanging tough' could leave advisers out on a limb

    28 Jun 2004

    From Michael Ward I read with interest the editorial in the June 21 edition of Mortgage Strategy but think that 'hanging tough' may result in advisers being left hanging around! Some networks are cutting fees, which surely is a sign their propositions were not fully thought through from outset. Enable has never planned to charge until regulation takes effect. It is an interesting fact that based on MCCB numbers of registered mortgage firms and advisers, only ...

  • 57% increase in complaints received by FOS

    1 Jul 2004

    The FOS annual review shows that 97,901 new cases were dealt with during the year to March 31, 76,704 of which were resolved. Of the cases received, 51,917 related to endowment policies linked to mortgages - a staggering increase from 13,570 the previous year. Complaints specifically concerned with mortgage loans fell from 9,438 in 2003 to 3,320 in the year to March 2004. Chief ombudsman for the FOS Walter Merricks says the organisation expects further increases next ...

  • 900 FSA authorisations in last financial year

    28 Jun 2004

    During the last financial year the FSA has authorised 900 firms and approved 48,109 individuals. In the last financial year, the FSA formally refused three corporate applications and formally warned another 10 firms that they were minded to refuse their applications: a further 79 applications were withdrawn, often as a result of FSA enquiries. In most cases the problem was inadequate financial resources. In other cases, the FSA suspected involvement with financial crime, ...

  • 96% of mortgage intermediaries have regulation plans, says BMS

    2 Jul 2004

    Only 4% were still unsure what they would be doing in relation to the introduction of mortgage regulation - compared with 16.4% in December 2003 and 10.5% in March 2004 - with 6% believing they are unaffected. Almost half of all respondents (49%) said they planned to be directly authorised by the FSA, whilst nearly four out of 10 (38%) said they planned to be appointed representatives. Just over nine out of 10 (91%) now submit at least some of their business online. ...

  • A view from the floor

    28 Jun 2004

    June 20 2004 marked 100 days since the publication of Professor David Miles' report on the UK mortgage market which recommended that mortgage lenders make their full range of products available to all borrowers. Nationwide has called on the industry to follow this recommendation as a matter of urgency. The failure of the government, the FSA and the industry to respond in any detail on taking forward Miles' recommendation is hitting consumers in the pocket. Despite criticising ...

  • Advantage Mortgage Services merges with lending arm

    1 Jul 2004

    Advantage Home Loans will be launched on July 1 with a new logo, corporate identity and improved website. The company aims to deliver the best packaging and lending service under one brand. Itsbranded range of products will continue to be promoted on both Trigold and Mortgage Brain sourcing systems under Advantage. Peter Bass, head of sales and marketing says: "Branded lending, encompassing the broadest product range imaginable is definitely the future of the sub-prime ...

  • Alexander Hall triumphant

    28 Jun 2004

    The inaugural event saw TMW take on eight of London's top brokerages and Mortgage Strategy in a series of matches. In the runners-up match Savills Private Finance faced The Mortgage Works. That game resulted in a 2-2 draw but TMW went on to win on penalties. Overall man of the tournament, chosen by the referees, was Towry Law goalie, Alex 'Barthez the Cat' Reeves. A charity raffle to win a signed replica England away shirt raised £800 and was won ...

  • All your network questions answered by the industry's leading experts

    28 Jun 2004

    Richard Griffiths is managing director of Network Data Many networks have struck third party deals with the likes of Paymentshield and you should expect to retain this type of monthly commission stream when you join one of the new mortgage networks. If you are leaving an existing IFA network you should check the details of your written contract. Dave Dodworth is compliance manager at Professional Mortgage Partnerships Your network will have to have arrangements ...

  • Approach the Spanish market with care

    28 Jun 2004

    Prices are escalating out of control and although Spain is one big building site, developers are finding it more and more difficult to satisfy the appetites of investors, homebuyers and IFAs or mortgage brokers. As is the case in the UK, the downside of this property boom for local residents, first-time buyers and those seeking to move home is that they are being forced out of the market. I predict it won't be too long before the Spanish start a revolution against the invasion ...

  • ARs could lose out in the waiting game

    28 Jun 2004

    Did Mortgage Intelligence's decision to offer free membership to its network until October 31 shake the mortgage market to its foundations? Given some of the press coverage it received you could be forgiven for thinking so. As we reported last week, Mortgage Next and Pink Home Loans were quick to follow suit. Meanwhile, other networks have not been slow to point out the superfluity of it all. Whitechurch Mortgage Network, Berkley Berry Birch and many more have all ...

  • AToM launches two semi-exclusives with Birmingham Midshires

    30 Jun 2004

    All Types of Mortgages Ltd has launched two semi-exclusives with Birmingham Midshires. The mainstream product includes a headline rate of 3.99%. The product tracks the Bank of England base rate and is discounted by 0.51% for two years, after which the rate tracks the Bank base rate plus 1.25% for the life of the loan and is available to all mainstream purchase and remortgage business. This rate is available up to 90% LTV up to £500,000 and has no extended redemptions. The ...

  • AttentiV Systems launches regulation-ready mortgage point-of-sale solution

    30 Jun 2004

    AttentiV Systems, formerly Lynx Financial Systems, has launched a regulation-ready mortgage point-of-sale solution, Summit Mortgage Sales. The system can be used across all distribution channels including branch, call centre, internet, broker and intermediary and offers seamless integration with Summit, AttentiV's retail banking system. The software has been developed to conform with upcoming mortgage regulation and can be deployed over a web browser. Summit Mortgage ...

  • Average house price £151,524, Nationwide index reveals

    30 Jun 2004

    The monthly rate of house price inflation eased slightly in June with the price of the average house rising 0.9% in the month, down on the 1.7% rise during May, Nationwide's June house price index reveals. June's price increase took the annual rate of house price inflation to 19.1% with the price of the average house now standing at £151,524, which is more than double the price at the start of the new millennium. At the top end of the price growth table are ...

  • Awards for uselessness

    28 Jun 2004

    From Andrew Forsey I read with interest Mike King's letter (Mortgage Strategy June 21) about lenders' poor service affecting brokers income and I totally agree with what he says. We spend at least half of every day chasing lenders for progress on cases. By far the worst culprits at present are Mortgage Express, Platform, BM Solutions and Northern Rock. How can any lender expect business in the future when they cannot process an increase in volume in the present? ...

  • AXA launches mortgage proposition

    28 Jun 2004

    AXA last week announced lthe launch of its mortgage proposition as part of its strategy to become a major player in the UK mortgage advice marketplace. AXA has applied to the Financial Services Authority for principal status for mortgage and general insurance business written by its tied distribution partners. By taking mortgage principal status AXA will enhance its mortgage support proposition for both current and future partners. The announcement follows last year's ...

  • B&B to slash 450 more jobs

    28 Jun 2004

    In its pre-close trading statement issued on Friday B&B, which is trying to sell non-core businesses including Charcol, says from its 3,950 employees, 150 have already been removed while 450 will be slashed between now and the end of next year. These will come from middle management, back office and support functions rather than customer-facing roles. It adds that the disposal of Charcol, its estate agency, its surveyor and its IFA businesses is going as planned and that the ...

  • BBG Commercial instructs first valuations through internet exchange

    30 Jun 2004

    BBG Commercial, a division of SecureMove Property Services, owned by Bradford & Bingley, has become the first company to instruct commercial property valuations through an internet valuation exchange. Using xit2's valuation exchange the system has been adapted so that BBG Commercial's network of valuers can benefit from the same technology. The xit2 system allows BBG Commercial to instruct its commercial valuers from its national commercial centre. It says the technology ...

  • Be wary of network deals, brokers told

    28 Jun 2004

    In an interview with Mortgage Strategy Hogarth, one of the founders of the support services group, voiced his concerns over the concept of appointed representative status. Hogarth says: "I am worried about people joining networks because they are attracted by the price and think they have found a safe home. They will get themselves into trouble if the networks have tried to do it on the cheap - one IFA network went bust earlier this year. If this happens members go down with the ...

  • BMS acts to limit self-cert lending

    28 Jun 2004

    The specialist lender has replaced the flat arrangement fee of £399 with a fee of 1% of the total loan, making it more expensive than competitors like Mortgage Express which has set its fee at £375. But BM Solutions' director of mortgages Michael Bolton says this move was essential. He says: "If we hadn't slowed down our lending in this sector we would have done over £10bn of self-cert by the end of the year. "Putting the brakes on now means we put ...

  • BMS moves to grab more of the B2L market

    28 Jun 2004

    • One-year money is down 0.13% to 5.25% • Two-year money is down 0.17% to 5.36% • Three-year money is down 0.18% to 5.43% • Five-year money is down 0.17% to 5.47% Due to previous swaps rises we saw the following lenders pull their fixed rates last week: Northern Rock, Bank of Ireland, The Woolwich, Cheltenham & Gloucester and Co-Operative. BM Solutions certainly had a busy week. It wants even more of the buy-to-let market. Until now ...

  • Brokers fear for lender's service

    28 Jun 2004

    The lender has reduced the number of LTV bands from three to two on all fixed rate and tracker products. New borrowers with an LTV of between 75% and 90% will now pay the same rate as borrowers in the 0% to 75% LTV band. Mike Fitzgerald, sales director at Brentchase Financial Services, says: "Nationwide's products are at the top of the sourcing system searches at the moment. But lenders must make sure that good deals are matched by good service levels." Daniel Lovey, ...

  • BuildStore in the running for National Business Awards in Scotland

    30 Jun 2004

    BuildStore has been shortlisted for two major awards at the prestigious National Business Awards for Scotland. BuildStore is one of five finalists in two categories - The E-Business Strategy of the Year and The Growth Strategy of the Year. BuildStore will make a presentation to the judges in July and the winners will be announced on September 9 2004 at a gala ceremony at the Glasgow Hilton. Sponsors of the event include GNER, NTL Business and Scottish Power. E-Business ...

  • BuildStore reassures brokers on TMB deals

    2 Jul 2004

    This follows Wednesday's announcement that TMB is closing its doors to new business. TMB will continue to provide its self-build and home improvement mortgages, making Buildstore the only remaining broker distributor in the UK. The self-build market leader will continue to offer brokers the BuildLoan/TMB self-build and the recently launched Ideal Home Improvement Mortgage, both of which provide clients with up to 95% borrowing on land/property purchase, up to 95% on ...

  • BuildStore relaunches website

    30 Jun 2004

    Self-build and renovation specialist BuildStore has relaunched its website, www.buildstore.co.uk, with a new look and enhanced functionality. The website, which over the past 12 months has clocked up an average of 4,000 daily visitors, sports a number of new features including a facility to carry out preliminary mortgageapplications online or use 'Mortgage Chooser' for those who don't know what type of finance. It also has generic information about self build issues, ...

  • C&G appoints head of strategy and research

    28 Jun 2004

    C&G has appointed Piers McCleery to the newly-created position of head of strategy and research. McCleery previously worked for the Boston Consulting Group and prior to this he worked at The Jardine Matheson Group where he had various management and strategy roles.

  • C&G reprices range fixed and capped rate mortgages

    29 Jun 2004

    Cheltenham & Gloucester is repricing its range of fixed and capped-rate mortgages to replace its previous range announced on May 27. C&G offers remortgaging which includes the waiver of £299 administration charge for loans of £25,000 and over and free legals or a £150 contribution toward legal costs for loans of £50,000 and over. No valuation charges or higher lending charges apply. Customers moving home can fix their mortgage between 5.79% and ...

  • C&G to hike interest rates

    1 Jul 2004

    The rates payable on all C&G variable rate accounts will increase. Most accounts will increase by 0.25%, the exceptions being Direct Transfer and Direct 30, which will increase by 0.15%. C&G's bonus tracker, which guarantees to track the Bank of England base rate until January 2008 will increase by 0.25% to 4.95% per year gross on the top tier including the bonus of 0.75% payable for the first six months. C&G's cash ISA will increase to 4.55% and the C&G Tessa ISA ...

  • CG Private Clients offers mobile mortgage quotes

    29 Jun 2004

    Homebuyers scanning property advertisements can now receive instant sample mortgage quotes on their mobiles, dispensing with the need to wait until offices reopen or they can locate a mortgage calculator. Developed by CG Private Clients, users text 60060 and key in the full amount they need to borrow (eg MTG 150000). Seconds later, a text message pops up with an approximate monthly mortgage payment. It is based on a repayment mortgage with a 25-year term at the lowest prevailing ...

  • Charcol launches two-year base rate tracker

    30 Jun 2004

    Charcol has launched a two-year base rate tracker at 0.51% below Bank of England base rate. The deal has a current pay rate of 3.99% and is available up to 90% LTV and reverts to base rate plus 1.25% for the remaining term, although as penalties only apply in the first two years borrowers can also switch to an alternative deal after this period. Interest is charged daily. Ray Boulger, senior technical manager at Charcol, says: "This deal is by far the cheapest discount ...

  • Couple win a weekend in London from TMW

    29 Jun 2004

    A couple lived the high life for a weekend in London after winning a competition run by The Mortgage Works. Brian Matthews from Stoke-on-Trent and his wife were treated to an all expenses paid weekend in the capital with tickets to the West End musical Chicago. In the Star Performer Name Game, Matthews correctly guessed a number of famous faces and linked them to their original name before it was changed to their celebrity name such as Harry Webb becoming Cliff Richard. One of ...

  • Coventry launches buy-to-let range

    28 Jun 2004

    Coventry last week launched a range of buy-to-let mortgages. The new portfolio includes a flexible product, with no early redemption charges and a free remortgage transfer service. There is also a guaranteed rate of no more than 2% above SVR and daily interest.

  • Curriculum vitae - David Webster

    28 Jun 2004

    Name: David Webster Age: 44 Company:The Hanley Economic Job title: Chief executive Where do you live? Checkley in Staffordshire Current Job: I have a wonderful job leading a medium-sized local building society through a period of substantial change in a dynamic market. The Hanley is a respected business with its roots in Staffordshire. Our aim is to be widely regarded as a genuinely customer-centred ...

  • Dear Delia

    28 Jun 2004

    Charlie Smith is 28 and still living with his parents but he is now ready to move out. He is single and earns £40,000 a year. He wants to buy a property for £148,000 but has no deposit and cannot ask his parents for help. What are his options? Delia says: With house prices still climbing it is becoming increasingly difficult for people to afford their first homes and they may be living with their parents for longer than desired. To help this client get started ...

  • Deirdre McManus appointed acting head of sales at B&W

    28 Jun 2004

    Deirdre McManus has been appointed acting head of sales at Bristol & West Mortgages after Brian Everett quit the company to pursue career options believed to be outside the mortgage industry. McManus is widely respected in the mortgage market and has a solid background, having worked for Bristol & West for the past 13 years. For the past five years McManus, known for her tough negotiating skills, has been regional sales manager for the central region which includes London - ...

  • Don't put off your network decision

    28 Jun 2004

    Despite the reluctance of some networks to be open and honest about membership levels, the fact is that mortgage intermediaries are not committing as quickly as we all would have liked. The key question for the networks must be - why is this the case? We believe that there is significant demand from mortgage intermediaries for the various network propositions but our research suggests they are delaying making a commitment to any network on financial grounds. The crux ...

  • Doubt over lender price indices

    28 Jun 2004

    This claim follows research on whether the performance of a football club affects prices in the local area. Leeds fans will be pleased to note there is no direct correlation, but there is a serious point to the research. Figures for the North-East demonstrate the shortcomings of indexation in underwriting deals. If you use the Halifax index to make a decision, it shows growth of 2.1 for a five-year period. This figure applies under the broad title of North-East. A lender having ...

  • Enable gets its MTA letter

    28 Jun 2004

    The letter, shown here, arrived at Enable's offices on Friday last week. It states: "We are minded to approve your application based on the information you have given us." The letter means prospective appointed representatives joining the network can be confident they will be able to trade after Mortgage Day. Although not a cast iron guarantee that the network will receive authorisation, it goes on to say that "assuming there have been no material changes in the information ...

  • Enterprise Homeloans launches cashback deal

    28 Jun 2004

    Enterprise Homeloans last week announced a Zurich-exclusive, client cashback deal of 0.5% for all completed sub-prime mortgages (where the procuration fee is at least 1%) across its entire lending panel, for all applications received between June 28 and August 31 2004. The cashback is capped at £750. Michael Clapper, CEO of Enterprise, says: "The best exclusives are the simple ones. As well as adding value for the client, they should be instantly understood and remembered ...

  • Exclusive Connections offers discounted mortgage product

    29 Jun 2004

    Exclusive Connections yesterday announced a discounted mortgage product, available for purchases and remortgage. The product offers 1.70% discount off SVR for three years and also has the advantages of no booking fee and no extended tie-ins and the 4.84% payable rate makes it a suitable product for first-time buyers. Also featured are Max LTV 95% and £500 customer cashback. Minimum loans of £15,001 for purchase and £25,001 for remortgage and a maximum ...

  • Exclusive: TMB closes to new business

    30 Jun 2004

    TMB is contacting brokers and packagers today telling them all cases being processed must be submitted by the middle of August. And one unnamed intermediary is speculating the move is more a result of HBOS trying to limit its market share and reduce its exposure to self-cert than to clear case backlogs. The move comes just a week after another HBOS subsidiary, BM Solutions, hiked its self-cert arrangement fee to 1% to limit business in that sector. em-financial ...

  • Fees proposal will expose networks as money machines

    28 Jun 2004

    From Michael Norwood I would like to make any brokers who are intending to go for direct authorisation aware of an important consultation paper, CP04/9, to which the FSA is inviting responses. This paper is proposing that any brokers who fall into the minimum income bands in both mortgage and general activities, i.e. under £100,000, are given a discount on annual fees. This would result in substantially lower annual fees for many brokers. The FSA has recognised ...

  • Finance industry brings a lot of bad press upon itself

    28 Jun 2004

    From Barry Cash Whilst I entirely agree with last week's Letter of the Week (Mortgage Strategy June 21) I can't help feeling that as an industry we are largely responsible for the bad press we receive. In 1976, long before I entered financial services or understood anything about them, my wife and I decided to get one of the new-fangled endowment mortgages. We had no way of knowing if this was a good deal - it was really a gamble. Our mortgage was for the then staggering ...

  • Five commitments for advised sales

    28 Jun 2004

    In its penultimate annual report the MCCB put an estimate on active mortgage advisers at somewhere between 55,000 and 60,000. It also confirmed that as at July 2003 there were 59,851 individuals who had obtained a recognised professional qualification - either CeMAP or MAQ. Not surprisingly the biggest jump in the numbers of those who obtained an accredited professional mortgage qualification came in the final four months of 2002, which coincided with the MCCB's fitness and competence ...

  • Focus on network size and culture

    28 Jun 2004

    This week I conclude my look at the importance of network size, financial stability and culture and this will bring me neatly on to the subject of service standards. The size of the network and its negotiating power with lenders and insurers is not a straight-line graph but more a step function. You have to meet certain targets or volumes of business before you can expect higher procuration fees from the lenders. However, it is relatively easy for a medium-sized network ...

  • Freedom Finance offers a helping hand to stranded brokers

    2 Jul 2004

    Freedom will accept any TMB mortgage application, providing it meets Freedom's productcriteria and is submitted on either a Mortgage Next or Pink Home Loans generic application form. TMB, the specialist HBOS lending subsidiary, wrote to intermediaries yesterday informing them it is shutting its doors to new business with effect from July 2. The company has stated it will be the end of August before it is in a position to consider resuming lending. Colin Snowdon, managing ...

  • FSA chief executive warns firms to be ready for GI regulation

    30 Jun 2004

    He says: "We have developed new rules for general insurance in this area focusing on four key obligations on firms to treat their insurance customers fairly, be properly resourced to cover their risks, be organised and run with demonstrable propriety and give us the information we need to make sure they are complying with our rules. "These rules will deliver positive, practical benefits for UK consumers. One of the obvious differences for anyone buying a regulated insurance policy ...

  • FSA consults on discounts

    28 Jun 2004

    In its consultation paper CP04/9: Periodic and Application Fees for Mortgage Business and General Insurance Broking, the FSA says it is proposing to implement, from 2005-2006, a discount for firms that fall into multiple fee blocks but only carry out limited amounts of business in some of those blocks. The minimum income band is £100,000 and under. Under the proposal, if a firm is a member of more than one fee block it will only have to pay half of the fee in any fee block ...

  • FSA warning on inducement payments

    28 Jun 2004

    The letter, issued last week and copied to mortgage industry trade bodies, could see an end to practices such as lenders being forced to pay to be on network panels. It states: "We have been told that in some instances product providers and intermediaries may be contemplating significant upfront payments (in some cases upwards of £1m) as a condition for the provider's products being placed on, or even considered for, the intermediary's panel… Such payments would ...

  • GMAC-CM Europe announces promotions and appointments

    28 Jun 2004

    GMAC-CM Europe last week announced a host of UK promotions and appointments. Kevin Cooper is promoted to managing director of real estate finance, Martin Wheeler becomes executive director of real estate finance and Gerry Mackenzie joins as director of real estate finance. James A Dalton, president of European operations for GMAC-CM Europe, says: "The promotion of Kevin and Martin recognises their achievements in growing our UK business from a greenfield operation ...

  • GMAC-RFC announces portfolio sales

    2 Jul 2004

    The £120m Amber deal comprises of a blended pool of buy-to-let and self-cert products and was completed on June 30 2004. Craig Beresford, head of asset sales at GMAC-RFC, says: "GMAC-RFC continues to lead the UK market in the creating and trading of assets. This is our fifth transaction with Amber Homeloans Ltd and we are pleased to be continuing our business relationship with it. This portfolio sale highlights the demand for buy-to-let and self-cert products in the ...

  • GMAC-RFC completes its largest securitisation at £1.5bn

    30 Jun 2004

    GMAC-RFC yesterday closed its latest and largest securitisation valued at £1.5bn through its RMAC programme. This is GMAC-RFC's 15th transaction in the UK RMBS market, and total issuance since 1998 now exceeds £7.8bn. This is the second mixed collateral deal to involve prime, near-prime and non-conforming collateral and the first to involve a tranche intended to be eligible for investment under Rule 2a-7 of the US Investment Company Act of 1940. Stephen ...

  • Hamptons and Square Mile unveil tracker rate

    28 Jun 2004

    Hamptons and Square Mile last week announced an exclusive tracker rate. The pay rate is 3.99% and it is Bank of England base rate less 0.51% for two years, then base plus 1.25% for the life of the loan. The rate contains early repayment penalties of 3% in year one and 2% in year two, along with an arrangement fee of £699. It will be available from July 1 for purchases and remortgages and is available up to 90% of £500,000, 85% to £1.7m and ...

  • Homeowners could save over £7bn on MPPI, says Goodfellows

    1 Jul 2004

    The full accident, sickness and unemployment package costs £3.95 per £100 of monthly benefit. One of the key features of the cover is the three months' free cover to all policy holders. Simon Burgess, managing director of Goodfellows, says: "Mortgage borrowers should not feel obliged to take out their lender's mortgage protection cover. By spending a little time shopping around for the best deal from a reputable provider, borrowers can make significant savings."

  • Housing boom may be coming to an end, say lenders

    29 Jun 2004

    The housing boom may be set to end, according to press speculation this weekend. Nationwide is to publish their housing figures for June today and comments made by those who compile the index suggest recent monthly house price increases are not being sustained. A period of stagnation is forecast as opposed to the crash some have predicted. The Nationwide index is of particular import as its indices are weighted towards the lower end of the market. It is suggested ...

  • How can the players in the industry work together to ensure accuracy of the KFI?

    28 Jun 2004

    Bill Safran is joint managing director of Trigold As a firm supporter of AMI, Trigold completely backs its aim to have accurate data available for intermediaries. Intermediaries are our primary customers and we remain focussed on supporting the 15,000 brokers that rely on our systems. Data accuracy has always been a vital component of the service we offer and we pride ourselves in this regard, but forthcoming regulation has put increased pressure on brokers - and the ...

  • I should know but I don't

    28 Jun 2004

    Q: I am laying down my firm's complaints-handling procedure. What are the main points I should consider? A: Last week's answer covered some of the core aspects of the incoming complaints regime and the relevant FSA Handbook sections (DISP). Under these rules, firms will have to maintain a system that ensures: • Complaints are dealt with by an individual who was not involved with the cause of the complaint, and is sufficiently senior within the ...

  • If the FSA was a football stadium...

    28 Jun 2004

    UEFA figures show that the Portuguese football authorities either built, rebuilt or refurbished the 10 Euro 2004 stadia for a cost of £275m. Compare that with the new Wembley stadium cost of more than £700m and either the Portuguese got a bargain or our rebuild is a tad on the pricey side. So what have regulation and football stadia got in common? Answer: neither comes cheap. I haven't seen a massive number of column inches on how much the final bill for regulation ...

  • IMB appoints Peace as managing director

    2 Jul 2004

    Peace has been successful as the company's director of operations, a role she took less than 12 months ago. Her strong organisational skills have had a major impact on the internal and external infrastructures of IMB, resulting in the company enjoying record-breaking sales during the first half of 2004. She replaces Dale Knight as managing director. Knight is to spearhead the launch of the Professional Mortgage Network, a sister company that is promoting a wider range of network ...

  • Internet Insite

    28 Jun 2004

    A return visit this week to London and in particular to the area in and around the City. The three websites I've visited - Square Mile Mortgage Finance, Shrink-Your-Mortgage and Mortgage Beaters - all have a different approach to the internet and make me wonder about the quality of advice that brokers are getting about how internet search engines work. Generally speaking, they don't like Flash technology and frames, so Square Mile and Mortgage Beaters must struggle for search engine ...

  • Investors losing faith in the property market

    29 Jun 2004

    Just 7% of investors now believe that the property sector offers the best return on investment, research by online financial services provider Ample shows. The figures taken from Ample's Investor Sentiment Barometer, independently researched by TNS, showed a 5% reduction in investor confidence in the property market compared to the previous month. Ample's Investor Sentiment Barometer indicates that the three quarter-point rises in interest rates since November ...

  • Is the mortgage market slowing down?

    28 Jun 2004

    This dramatic drop in gross lending has been driven by a fall in house purchase. News of the decline comes in the wake of the recent warning by Bank of England governor Mervyn King that house price rises might now have peaked. So, Mortgage Strategy asks: Are the CML figures indicative of a slowing down of the mortgage market or are they just a temporary blip? Miles Shipside, Rightmove The housing market is slowing, there is no doubt of that. The fall in lending ...

  • Jobs boost for Equity Funding Corporation

    29 Jun 2004

    Equity Funding Corporation is opening a new call centre in West Kirby, Merseyside, creating 50 sales support jobs by the end of the year. It said the move was in response to a changing market and the need to provide a more responsive communication platform to the thousands of intermediaries who are opting for direct authorisation with the Financial Services Authority. Equfund operates a no upfront fees service to introducers and has held a lending partnership with Platform ...

  • Kensington Mortgages launches £700m securitisation

    30 Jun 2004

    Kensington Mortgages has launched its latest £700m mortgage-backed securitisation. Kensington says the transaction was fully subscribed as demand was high and price tightened from early indications. Residential mortgage securities 18 plc (RMS 18) was priced on June 28 2004. The £700m transaction is the second Kensington securitisation in 2004. Pricing continued the improving trend seen with RMS 17 in February, with all tranches having tightened from those ...

  • Kensington offers no legal fees and cashback on remortgage products

    28 Jun 2004

    Kensington Mortgages will be offering free legal fees for its remortgage products across its mortgage range, excluding buy-to-let and residential investment mortgages from July 1. It will also be giving £250 cashback on these remortgage products. Alastair Pate, director of marketing and strategy, says: "This is the first time that Kensington has launched a free legal fees and cashback remortgage and it is a development that I believe will add great value ...

  • Kick start

    28 Jun 2004

    Euro 2004 is well underway and while the domestic season might have finished other trends are just emerging concerning those housed in the shadow of the Premiership's elite. Top-flight football is notorious for its excesses, inflated wages, agents' and transfer fees but over the past few months UK house prices have been soaring to levels that would make even footballers' eyes water. The Monetary Policy Committee and the government, among others, are examining ...

  • King issues fresh house price warning

    28 Jun 2004

    Bank of England governor Mervyn King issued a renewed warning last week over house prices, but said a return to the devastating problems in the early 1990s was unlikely. King reasoned that house prices were not at a sustainable level and that a sharp fall is imminent. The governor moved to allay fears of a housing crash by saying there was no worry of borrowers getting trapped in negative equity but argued that homebuyers needed to be aware that price falls are possible. King ...

  • Legal & General Partnership receives MTA letter

    30 Jun 2004

    The Legal & General Partnership has been issued with its minded to authorise letter by the FSA. The Legal & General Partnership will act as principal for firms wishing to be Legal & General's appointed representatives for mortgage, protection and general insurance sales under the new FSA regulations starting to come into effect from October 2004. Over the last month a series of regional forums have been held to confirm the final proposition for the firm to businesses ...

  • LIME teams up with 10 lenders

    2 Jul 2004

    LIME has launched 'Select Lender Partnership' to strengthen the support provided to members in all areas of their business in the run up to Mortgage Day and beyond. Benefits of the partnership for members will include enhanced procuration fees, sales and marketing support, training, dedicated workshops, instant access to lender material and enhanced service standards to name but a few. The 10 lenders have been chosen for their strength, experience and diversity ...

  • LMS plans to get closer to brokers

    28 Jun 2004

    It has appointed Deryck Highet, who has joined from Bradford & Bingley where he worked for the past 24 years in a number of positions, to the newly-created role. He will be responsible for a team of 11 account managers and for developing the transactional and remortgaging business. LMS has a national network of solicitors to which it refers conveyancing business introduced by brokers in return for commission which LMS says can form a substantial income stream. ...

  • Local factors that affect regional house prices

    28 Jun 2004

    It has always been true that on a regional basis, some things can dramatically affect not only house prices (both positively and negatively) but also the speed with which propertes sell and rental values. The football analogy gives a good illustration of how prices can be affected on a local basis. This is inevitably a factor with the more popular clubs as there will always be die-hard fans who want to live as close to their idols as possible - and this effect spills over into all sorts ...

  • Lower house price inflation will help country-dwellers the most

    28 Jun 2004

    Remember the heady days of 1998 when rural issues were being debated virtually every day in the media? Labour had been elected on a manifesto which promised to ban fox hunting and the rural lobby was up in arms. Thousands of people joined the Countryside Alliance to march through the streets of the capital and in a bid not to be painted as defenders of fox slaughterers the Alliance cleverly widened the debate to cover the issues of rural housing, transport and employment. Fast ...

  • Management buyout at Key Retirement Solutions

    2 Jul 2004

    The board of directors comprises four members of the existing management team; Colin Taylor, managing director, Dean Mirfin, business development director, Paul Wilson, operations director, and Richard Overson, sales director, who have each invested private equity in the company.   The management buyout has been undertaken to enable Key Retirement Solutions to pursue ambitious growth objectives in the equity release and retirement planning sectors, independently of external ownership.   Ke

  • Marketing Brief

    28 Jun 2004

    First National was in the throes of a redesign when I contacted it earlier in the year so I thought I would leave it until now and put it alongside SPML. And an interesting pair of bedfellows they make too. Ignoring products and rates - this is after all a column reviewing marketing material rather than product portfolios - SPML wins as far as the printed material is concerned. To my eye it looks better and, despite its greater complexity, works better. But First National is well ahead ...

  • McManus named acting head of sales

    28 Jun 2004

    McManus is widely respected in the mortgage market and has a solid background, having worked for Bristol & West for the past 13 years. For the past five years McManus, known for her tough negotiating skills, has been regional sales manager for the central region which includes London - possibly the toughest patch in the UK. Although McManus's appointment is as acting head of sales, insiders believe her to be firm favourite to take the post full-time, should she apply. Dominic ...

  • MEX gives e-access to offers

    28 Jun 2004

    MEX says its system differs from other lenders' in that it generates an electronic offer the instant a case is offered, saving intermediaries from having to wait days for a mortgage offer to arrive in the post. Following a pilot with packagers and brokers, electronic offers will be made widely available in the coming weeks. The electronic offer is available in PDF format, which MEX says ensures a controlled, branded and legally binding offer letter ready for use by ...

  • Mortgage lending lower but approvals up in May, says BBA

    28 Jun 2004

    Figures released by the British Bankers' Association last week show that gross mortgage lending totalled £15.5bn in May. This was £0.6bn lower than April and reflects lower approval volumes seen in April. After seasonal adjustment, there was a rise in net lending of £4.9bn. Approvals in May were 5% stronger than the relatively weak figure seen in April. There were 222,000 loans approved in may, with a total value of £18bn. The average approval ...

  • MSN launches AR proposition to non-members

    2 Jul 2004

    Having given their existing 1,300 members the guarantee earlier this year that they would focus their efforts on ensuring members were supported and assisted in the transition of their businesses into regulation, whether that be direct or as an AR, they are now offering non-members the chance to become a MSN AR. Peter Ransome, sales director, says: "We are delighted with the success of our recruitment of ARs from our current membership and are well on target to achieve our company ...

  • Music to lose customers by

    28 Jun 2004

    From Brian Humphreys How I agree with Mark Osland (Mortgage Strategy June 7) about poor service. Not only have I just spent 10 minutes on hold to Mortgage Express but the music I was treated to featured the lyrics: "It's a rat trap Billy - and you've been caught!" I half expected the next record to be Hanging on the telephone by Blondie or maybe something by Dire Straits. Do companies choose records to reflect their service levels? Perhaps your readers could come up ...

  • Network Data signs Paymentshield deal

    28 Jun 2004

    This also means that members with existing Paymentshield policies will continue to receive their monthly commissions. Network Data says this follows significant increases in term commissions and a rise in the number of products and providers available through its insurance panel. The company will release a new version of its mortgageLink software in August which will meet all FSA requirements and include Paymentshield's Inertia system. A further version will be developed ...

  • Newcastle offers mix and match mortgage

    29 Jun 2004

    Newcastle has announced a mix and match mortgage offering borrowers the security of a fixed rate and the flexibility of a variable offset combined. Borrowers can have part of their mortgage as a variable offset mortgage, which means they can use any savings to reduce, or offset, the interest paid on it. As this portion of the loan is based on a variable rate, they could also benefit if interest rates fall. Newcastle's offset mortgage has an initial rate of its SVR less 2.2% ...

  • Online auction bids flood in for Beckham's boot

    28 Jun 2004

    The highest bid so far for the replica Adidas football boot - the type Beckham wore when he scored that penalty against Argentina in World Cup 2002 - signed by the player himself is now £940. You still have a chance to get your hands on this extraordinary memento, which has been box-framed along with a quarter final ticket from the 2002 tournament and a signed image of Becks, by going to www.mortgage strategy.co.uk and tabling your bid before the end of the Euro 2004 tournament.

  • Pay heed to searching questions

    28 Jun 2004

    Last week's column looked at some of the issues related to the housebuying process, including the role of the estate agent, the proposed new Home Information Packs and investigation of title. This week's column continues to look at the process and, in particular, some aspects of the role of the conveyancer. As part of the investigation of title, a conveyancer will need to carry out various searches, including the Charges Register (if the property is registered), the Land ...

  • Paymentshield joins Network Data panel

    29 Jun 2004

    Network Data has signed a deal which will enable all its appointed representatives to place their business with Paymentshield. This alliance also means that ARs with existing Paymentshield policies will continue to receive their monthly commissions. This follows significant increases in term commissions and an increase in the products and providers now available through Network Data's insurance panel. Network Data will release a new version of its mortgageLink ...

  • Peach Financial Group offers flexible base rate tracker

    29 Jun 2004

    Peach Financial is offering a flexible base rate tracker mortgage of just 4.84% on home loans. Peach says the mortgage will suit those who enjoy freedom and don't want to be tied to a long-term deal. The mortgage can be reduced or redeemed at any time without incurring an early repayment charge. The mortgage benefits are portable and can be applied to a new mortgage with Peach, until the end of the predetermined period. Arrangement costs are free, subject to completion.

  • Personal Bankruptcy - what recent changes mean for your clients

    29 Jun 2004

    According to the Oxford Dictionary bankruptcy means 'utter failure'. But unlike the definition here rules on personal bankruptcy have been given a more positive meaning and are now placed under the new Enterprise Act 2002, which received Royal Assent on November 7 2003 and has come into effect on April 1 2004. The Enterprise Act 2002 is designed to encourage entrepreneurship and support those who have failed business enterprises with little fault of their own. The ...

  • Personal Touch Insurance receives MTA letter from FSA

    30 Jun 2004

    Personal Touch Insurance has been notified by the Financial Services Authority that it is minded to approve its application to carry on mortgage and general insurance business. PTI is already authorised as an IFA network and applied to have its authorisation permissions varied to cover Mortgage and General Insurance business earlier this year. John Ruddick, PTI's director of compliance and training, says: "I am delighted to confirm that the FSA has notified us that ...

  • Pink Home Loans launches self-cert deal with Platform

    1 Jul 2004

    The product offers an initial pay rate of 5.24%, tracking the Bank of England base rate plus 0.74% for three years, and offers £250 cash back. The product is available to first time buyers with up to 85% LTV. The product is available to Pink premier and mortgage club customers and offers 0.65% broker commission. Key selling features include £250 cash back, broker commission of 0.6% and £100 off the application/valuation fee for loans over £150,000 ...

  • Pink Home Loans receives minded to approve letter

    29 Jun 2004

    Pink Home Loans has received its minded to approve decision from the Financial Services Authority. The mortgage distributor was confident that it would receive its minded to approve letter from the FSA as it has invested heavily in ensuring it has robust systems in place and is now in a position to continue with its plans to provide a compliance solution for its customers whichever regulatory route they decide to take. Tony Jones, managing director at Pink Home Loans, ...

  • Pink teams up with Platform on buy-to-let adverse deal

    28 Jun 2004

    Pink Home Loans has teamed up with branded lending partner Platform to offer a buy-to let, adverse deal with a 2.45% discount, giving an initial pay rate of 6.05%. Clients are allowed up to 10 properties with a maximum total borrowing of £350,000 with Platform. Buy-to-let investors can also save £150 off the application/valuation fee on loans over £150,000. The product is available to Pink Premier and Mortgage club customers, and offers a competitive ...

  • PMN urges potential ARs to check network credentials

    28 Jun 2004

    The Professional Mortgage Network is urging mortgage advisers who are seriously considering becoming appointed representatives to thoroughly check out the credentials of a network prior to becoming a member. In an attempt to help the intermediary community establish the strength and credibility of the many network propositions, PMN last week launched a Mortgage Network Healthcheck, which is an essential guide listing the 30 most important questions a prospective AR member must ...

  • RAMP appoints director of compliance

    28 Jun 2004

    The Regulatory Alliance of Mortgage Packagers has appointed Samantha Foxall as its director of compliance.   The 10 packagers that make up RAMP are all actively developing their businesses to fully comply with the introduction of Mortgage Day. They will each operate their companies as if they were individually regulated.   RAMP has been working with Wragge & Co, LLP's specialist compliance function, since March to develop new procedures. Foxall, who is leaving Wragge ...

  • RAMP appoints full-time compliance director

    28 Jun 2004

    RAMP claims to be the first packager alliance to make the commitment of employing a full-time compliance manager. RAMP managing director John Rice says: "This drives home the fact that we are serious about compliance. By the time Mortgage Day arrives we - and the lenders on our panel - will be certain that applications from members meet every condition of the FSA regime." RAMP has been working with Wragge & Co since March to develop procedures. Foxall has taken a ...

  • Sage Financial receives MTA letter from FSA

    30 Jun 2004

    The Inter-Alliance group has announced that its subsidiary Sage Financial has received its minded to approve notification from the FSA. With Trinon, another Inter-Alliance brand, authorised through Sage, the group says that effectively two of the group's mortgage networks can now approach their respective markets with more confidence than before. Helen Davis, distribution development director at Inter-Alliance, says: "This is great news for both Sage and Trinon. We ...

  • Savills Private Finance launches tracker

    29 Jun 2004

    Savills Private Finance yesterday launched an exclusive tracker product. The mortgage offer is 0.51% under Bank of England base rate for two years at a current rate of 3.99% and is available for purchase or remortgage. The product is available for loans up to 90% of property value up to £2m. There is a £699 arrangement fee and no extended redemption penalties.The tracker is available online only. Simon Jones, director at SPF, says: "This residential ...

  • Say goodbye to golden hellos

    28 Jun 2004

    As we reveal on page 4, in a strongly worded letter to the financial community, Oliver Page and David Strachan, directors of FSA's retail division, say they consider such payments would "be incompatible with the fundamental principle that a firm must not conduct business under arrangements that might give rise to a conflict with its duty to customers". They go on to point out that financial support for intermediaries should either be in commission that is disclosed to the consumer ...

  • St Andrew's secures B&B mortgage protection account

    29 Jun 2004

    St Andrew's Insurance, a member company of the HBOS Group, yesterday announced that it has won the Bradford & Bingley mortgage payment protection account. This move will see both new and existing mortgage payment protection policies sold within the intermediary's retail network, which consists of over 500 locations within the UK, transfer to St Andrew's from July 1 2004. Advisers will use an electronic application process via the Bradford & Bingley Intranet site ...

  • Standard Life Bank reports 200% rise in profits

    2 Jul 2004

    The half yearly results, from the beginning of 2004 to May 15, are doubly pleasing for the Standard Life subsidiary as they are 50% higher than the £4.1m profit made for all of 2003. Gross mortgage lending for the period was £2bn, an increase of 23% compared to the first six months of 2003. As a result, mortgages under management stood at £9.3bn, up £0.6bn from the year-end. The company's buy-to-let mortgage book has also expanded, comprising ...

  • Staying on the right side of the FOS

    28 Jun 2004

    Last week I summarised the FSA's plans for funding the Financial Ombudsman Service and Financial Services Compensation Scheme. Having looked at the funding of these schemes (outlined in CP04/04) let's now take a look at how to handle complaints. The rule of thumb here, of course, is that prevention is preferable to cure. The mortgage industry generates relatively few complaints as a sector and FOS has gone on the record as saying it does not expect a swathe of mortgage complaints ...

  • Technological edge helps to ensure top service

    28 Jun 2004

    Birmingham Midshires Solutions is part of the UK's fastest growing bank, HBOS, and is the UK's biggest specialist lender. It employs 2,000 people at its corporate headquarters at Pendeford in Wolverhampton (pictured). It provides a range of specialist lending products and manages assets in excess of £20bn. Firmly established as a market leading specialist mortgage lender, BM Solutions has won numerous industry awards. Q: How is BM Solutions structured? A: ...

  • The Mortgage Mole

    28 Jun 2004

    Coming home So, with England's hopes dashed by a dodgy ref, Mole and the rest of the mortgage industry began to bid a sad farewell to Portugal last week. "The only good thing to come out of the England-Portugal game was that a Spurs player scored," PMS national mortgage manager Malone told Mole. "Portugal pick Postiga and he gets his first goal in 26 games." Meanwhile Mole was busy totting up the benefits the mortgage industry has injected into the Portuguese economy. ...

  • The pursuit of inner harmony

    28 Jun 2004

    This issue is about teamwork and working towards common goals. To achieve this effective, three-way internal communication is key (up, down and across). With reference to the author's comments about brokers, I often hear it said that there are over 4,000 mortgage products on the UK market at any given time, so perhaps consumer choice in the mortgage market has gone a step too far. This has led some lenders to go full circle and actually reduce the size of their product range ...

  • Two cases have forced me to steer clear of Northern Rock

    28 Jun 2004

    From Gareth Davies I can only endorse the comments made by John Stewart (Mortgage Strategy June 14) about the service at Northern Rock. I have had two cases with it, one since April 20 and the other since April 29, and everything possible than could go wrong has done so - wrong amounts agreed; valuers not instructed; employers references not taken up until offer stage; and wrong offer letters issued. Meanwhile, one case was completely 'lost in the system' and took almost ...

  • UCB Home Loans increases fixed rates

    29 Jun 2004

    UCB Home Loans, the specialist lender of Nationwide, is increasing its fixed mortgage interest rates by 0.20% to reflect recent movements in the money markets. The new rates are available from July 1 2004. A self-certification two-year fixed rate is offered at 5.99%, a self-cert three-year fixed rate is available at 6.09% and a self-cert five-year fixed rate comes at 6.19%. A buy-to-let two-year fixed rate is also available at 6.19% along with a buy-to-let five-year ...

  • Von Daniken given the chance to reclaim home

    28 Jun 2004

    She was due to appear at King's Lynn County Court last Thursday to appeal against the repossession she says was a result of the mortgage falling into arrears after she was defrauded by her former partner. She managed to get this adjourned with the help of solicitor Ahmad Butt from the Mary Ward Legal Centre. Solicitors for MPLC (trading as Mortgages 4 Ltd) Jeffrey Green Russell faxed a letter to the court and Von Daniken which states: "...they consent to the appeal being adjourned ...

  • Why Charles Gooding had to step down

    28 Jun 2004

    "It has been an honour and a privilege to work with the AMI board since its formation," Gooding said in a press release last week. "I decided to step down as chairman some time ago once I was confident we had achieved certain objectives and had created a credible and reputable trade body." Yet months earlier it was Gooding himself who threatened to plunge that credibility into disrepute. Back in February this year Mortgage Strategy led calls for clarification on Gooding's ...

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